Dissertation Project on DTH services

A DISSERTATION ON

INDIAN DTH SATELLITE TV SERVICES:

A COMPARATIVE STUDY OF VARIOUS DTH

SATELLITE TV PLAYERS WITH CABLE TV

IN GHAZIABAD REGION

Submitted for partial fulfillment of the Requirement of the Degree

POST GRADUATE DIPLOMA IN MANAGEMENT (PGDM- 2008-2010)

BY

BARUN ADAK

ROLL NO. – 2008044

UNDER THE GUIDANCE OF

PROF. SOUMENDU BHATTACHARYA

SUPERVISOR

Faculty Member of

Institute of Technology & Science

Mohan Nagar, Ghaziabad

I.T.S- Management & IT Institute,


JANUARY, 2010

CERTIFICATE

Certified that Barun Adak has carried out the research work presented in

this thesis entitled “INDIAN DTH SATELLITE TV SERVICES: A

COMPARATIVE STUDY OF VAROIUS DTH SATELLITE TV PALYERS

WITH CABLE TV IN GHAZIABAD REGION” for the award of

Post Graduate Diploma In Management from I.T.S-Management and IT

Institute, Mohan Nagar, Ghaziabad under my supervision. The Dissertation

embodies result of original work and studies carried out by Student himself and

the contents of the thesis do not form the basis for the award of any other degree

to the candidate or to anybody else.

Date: (PROF. SOUMENDU BHATTACHARYA)

Place: Faculty Member of

Institute of Technology & Science.


CANDIDATE‟S DECLARATION

I hereby declare that the work presented in this project entitled “INDIAN DTH

SATELLITE TV SERVICES: A COMPARATIVE STUDY OF VARIOUS DTH

SATELLITE TV PLAYERS WITH CABLE TV IN GHAZIABAD REGION”

submitted towards completion of project in Forth Semester of PGDM at the Institute of

Technology & Science, Ghaziabad, is an authentic record of my original work carried

out under the guidance of Prof. Soumendu Bhattacharya, Faculty member of Institute of

Technology & Science, Ghaziabad.

I have not submitted the matter embodied in this project for the award of any other

degree.

(Barun Adak)

PGDM (2008-2010)

Roll No. - 2008044

Institute of Technology & Science

Ghaziabad

PREFACE

The PGDM programme is well structured and integrated course of business

studies. The PGDM programme provides student with a fundamental knowledge of

business and organizational functions and activities, as well as an exposure to strategic

thinking of management.

The dissertation report is an integral part of this PGDM course which gives us

the knowledge of industry environment well and theoretical concept which applied by

the industry players. The main objective of this dissertation report at PGDM level is to

develop skill in student by supplement to the theoretical study of business management

in general. Here we analyze the market situation of the industry on the basis of market

situation, data collected by which we come to the strategic implementation of the

organization in the industry.

The dissertation we have to do on the topic to the field of our interest in the

future where we have to prepare a project report. I have done my dissertation on the

topic of “INDIAN DTH SATELLITE TV SERVICES: A COMPARATIVE STUDY OF

VARIOUS DTH SATELLITE TV PLAYERS WITH CABLE TV IN GHAZIABAD

REGION”. During this project I have got a lot of knowledge of this industry & about

this market also. In this project I have analyze why people switch over or want to

switch over their TV network from Cable TV network to DTH satellite TV network. I

have done the factor analysis to analyze the impact of various influencing factors to

that switch over. And also find out various substitutes and their position in the market.

In this project I have give so many recommendation on the basis of the analysis which

is the implementation of the strategic thinking.

This research work helps me to challenge the competition in this competitive market.

Understand the consumer first is very important in present market scenario. So to do

this research work is very important on the basis of the market situation, market

environment, buying behavior & so on. This would help me immensely in my future

learning of marketing.

ACKNOWLEDGEMENT

I am overwhelmed with pleaser and my deep sense of gratitude to my college for

assigning me such opportunity to do dissertation project which opened my vision

towards research experience of the theory implications and practical applications

studied in this PGDM course.

I express my heartfelt thanks to my SUPERVISOR in college Prof. Soumendu

Bhattacharya who has been help me to choose the topic & do this project and all

faculties in my institute who has been provided us with guidance, inspiration,

perspective and stimulating discussion throughout the writing of this project.

I would like to extend my sincere thanks to Dr. Manoj Kr. Dass, Dr. Sapna Rakesh,

Dr. Kavita Srivastav and Prof. Priya mam for acting as the constant motivating force

for direct me towards right path and for the completion of the project.

I have all my appreciation for my parents whose unfailing inspiration, love and

arduous effort have enabled me to reach this level. And I would like to thanks to my

friends and all the people who are involved in this project directly or indirectly.

TABLE OF CONTENTS:

CHAPTER 1- INTRODUCTION

1.1 INTRODUCTION 2

1.2 OBJECTIVE OF THE STUDY 5

1.3 METHODOLOGY 6

1.3.1 SAMPLING & POPULATION 6

1.3.2 DATA 6

1.3.3 AREA COVERED 6

1.3.4 QUESTINNAIRE 6

1.3.5 TOOLS & TECHNIQUES 6

1.3.6 SOFTWARE 7

1.4 SCOPE OF THE STUDY 7

1.5 LIMITATION 8

CHAPTER 2- REVIEW OF THE STUDY

2.1 REVIEW OF THE STUDY 9

CHAPTER 3- THEORITICAL CHAPTER

3.1 INDIAN CABLE TV SERVICES 15

3.2 DTH INDUSTRY

3.2.1 INDIAN DTH SATELLITE TV SERVICES 16

3.2.2 WORK OF DTH 17

3.2.3 CURRENT SCENERIO OF DTH 17

3.2.4 STRUCTURE OF DTH INDUSTRY 19

3.3 ENVIRONMENT ANALYSIS OF DTH 21

CHAPTER 4- DATA ANALYSIS

4.1 DEMOGRAPHIC CHARECTERISTIC 27

4.2 FREQUENCY ANALYSIS 28

4.3 CROSS TABULATION 40

4.4 MEAN, SD & VARIENCE 43

CHAPTER 5 DATA ANALYSIS: SPECIFIC TOOLS

5. FACTOR ANALYSIS 45

5.1 RELIABILITY TEST 46

5.2 FACTOR ANALYSIS 47

CHAPTER 6- FINDINGS, SUGGESTIONS

6.1 SUMMERY OF FINDINGS 51

6.2 SUGGESTIONS 53

6.3 SCOPE OF FURTHER STUDY 54

6.4 CONCLUSION 55

BIBLIOGRAPHY I

REFERENCES III

ANNEXURE V

CHAPTER 1 – INTRODUCTION

1.1. INTRODUCTION

1.2. OBJECTIVES OF THE STUDY

1.3. METHODOLOGY

1.3.1. SAMPLE & POPULATION

1.3.2. DATA

1.3.3. AREA COVERED

1.3.4. QUESTINNAIRE

1.3.5. TOOLS & TECHNIQUES

1.3.6. SOFTWARE

1.4. SCOPE OF THE STUDY

1.5. LIMITATION OF THE STUDY

CHAPTER 1 - INTRODUCTION

1.1 INTRODUCTION:

In earlier days there was only one TV channel in India the “Doordarshan”,

Channel doordarshan was owned and operated by government of India. In those eras

every home which had a TV set used to have its own antenna to capture the signals.

The Cable Television Ordinance Law was passed in January 1995. This enabled

cable operators to feed channels and later on private companies were allowed to air their

own channels and this led to the explosive growth in number of TV channels and number

of cable operators. The growth of TV channels & cable operators created a big industry

and market opportunities.

Until few years back there were as many as 1,00,000 cable operators across India.

However the services provided by cable operators were poor. The strikes, increase in

tariff plan, selective broadcast and poor services were major cause of dissatisfaction

among the customers. This has created an opportunity for DTH, which serves an

immediate threat to the high-end cable networks. Some of the key players in the industry

are DishTV by Zee group, TataSky joint venture of Tata & Star TV, Big TV by Anil

Dhirubhai Ambani Group, Digital TV by Bharti Tele media, SUN Direct from the

promoters of Sun TV. There are some other companies who are contemplating to start

their own DTH like Videocon.

The Indian market was till now dominated by the presence of local cable TV

operators and had complete monopoly over it. DTH opened an option for Indian

Consumers to opt for the satellite service to obtain television channels direct to their

homes without any intermediaries. It also provided several value added services to

enhance their television watching experience.

Still, as DTH is still a relatively new category and most people were hesitant to

experiment with it. While Indian consumers were not completely satisfied with their

cable services, they did not feel the need to switch over to any other means of

entertainment. It was therefore imperative for companies such as Tata Sky, Dish TV,

Reliance BIG TV, SUN Direct, AIRTEL Digital TV, DD Direct+ & Videocon d2h to

educate the consumers about the advantages of the service and in turn create an urge to

invest in it.

There is an immense opportunity for DTH in the Indian market. The opportunity

in India almost 10 times that in developed countries like the US and Europe. For every

channel there is a scope for broadcasting it in at least ten different languages. So every

channel multiplied by ten that is the kind of scope for DTH in the country.

The way DTH reaches a consumer's home is different from the way cable TV

does. In DTH, TV channels would be transmitted from the satellite to a small dish

antenna mounted on the window or rooftop of the subscriber's home. So the broadcaster

directly connects to the user. The middlemen like local cable operators are not there in

the picture.

DTH can also reach the remotest of areas since it does away with the intermediate

step of a cable operator and the wires (cables) that come from the cable operator to your

house. As we explained above, in DTH signals directly come from the satellite to your

DTH dish.

DTH offers better quality picture than cable TV. This is because cable TV in

India is analog. Despite digital transmission and reception, the cable transmission is still

analog. DTH offers stereophonic sound effects. It can also reach remote areas where

terrestrial transmission and cable TV have failed to penetrate.

Apart from enhanced picture quality, DTH has also allows for interactive TV services

such as movie-on-demand, Internet access, video conferencing and e-mail. But the thing

that DTH has going for it is that the powerful broadcasting companies like Star, Zee, etc

are pushing for it.

In DTH, the payments will be made directly by the subscriber to the satellite

company offering the service. A big problem that broadcasters face in India is the issue of

underreporting of subscribers by cable operators.

Consider the cable operators pyramid. Right at the top is the broadcaster. Next

comes the Multi Service Cable Operator (MSOs) like Siticable, InCable, etc. Below them

are the Access Cable Operators (ACOs) or your local cable guy who actually lays the

wires to your house. The local cable operators or the ACOs then allegedly under-report

the number of subscribers they have bagged because they have to pay the MSOs

something like Rs 30-45 per household. Showing a lesser number of households benefits

ACOs.

With no way to actually cross check, the MSOs and the broadcasters lose a lot.

Broadcasters do not earn much in subscription fees and are mostly dependent on

advertisement revenue to cover their costs, which is not sustainable and does not

offer high growth in revenues for broadcasters.

The way out of this is to use a set-top box so that it will be clear how many

households are actually using cable or going for DTH where broadcasters directly

connect to consumers and can actually grow revenues with a growth in the subscriber

base.

Today, broadcasters believe that the market is ripe for DTH. The prices of the

dish and the set-top box have come down significantly. Overall investments required in

putting up a DTH infrastructure has dropped and customers are also reaping the benefits

of more attractive tariffs.

The major thing that DTH operators are betting on is that the service is coming at

a time when the government is pushing for CAS (conditional access system), which will

make cable television more expensive, narrowing the tariff gap between DTH and cable.

DTH faces stiff competition from the terrestrial, cable and IPTV. As per the

industry estimates, there are 130 million TV homes of which 85 million are served by

cable and around 16 million by DTH with the remaining taken by terrestrial transmission.

1.2 OBJECTIVES OF THE STUDY:

To study the reasons behind the switching over of multi TV channel users from

cable TV to DTH services.

There are so many reasons behind this switching over. People sometimes think

that both network operators give various channels but it is the picture quality

which differentiates those. Sometime pay only for those channels which you need

is also a reason for that switch over. So here we want to study the reason behind

the switching over of multi channel users from cable TV to DTH TV.

To analyze the factors which influence these switching over from cable TV to

DTH services in Ghaziabad region.

All factors not influence more the people to that switch over, there we want to

make a series of factors on the basis of influencing power of the factors by

applying statistical tools.

To analyze the position of substitutes of DTH services with respect to DTH

services in the market.

IPTV, cell phone TV these are the substitute of the DTH satellite TV which are

now introduce themselves in the market. Here we want to analyze the position of

those substitutes in the market.

To analyze the opportunities of Indian DTH services.

Analyzing the environmental analysis we try to analyze the market of the TV

networks which are quite helpful to find out opportunities of Indian DTH

services. How the present DTH players capture the opportunities to stay in the

growth.

1.3 METHODOLOGY:

1.3.1 SAMPLE & POPULATION:

The sample size is , which is sufficient to do the analysis more effectively. As a

general rule of thumb 300 data is more enough to analyze, however in the present

study the total sample size is .The target population of the survey constitutes the

TV households in Ghaziabad region. I take the Ghaziabad area to collect the

primary data from households as this is the most growing area in NCR region.

1.3.2 DATA:

Here mainly primary data collected from the TV households in Ghaziabad region

by filled up the questionnaire.

1.3.3 AREA COVERED:

The area targeted here is Ghaziabad region which is the more growing area in

NRC region in the scenes of population, industrial growth & economical growth

also. The data have collected randomly from this region. I mainly covered

Sahibabad area, Vasundhara area, Ghaziabad market area and Sastri nagar area to

collect the data.

1.3.4 QUESTINNAIRE:

The questionnaire is well designed and close ended type, so that people easily

filled the questionnaire according to their perception. People always flexible to

give their answer objectively. So here open ended question is more effective as

the target population is households.

1.3.5 TOOLS & TECHNIQUES:

Descriptive statistics used here to analyze frequency of the DTH TV satellite and

cable TV and have used Factor analysis also to analyze the various influencing

factors of DTH TV services which influenced people to switch over from DTH

TV to Cable TV.

1.3.6 SOFTWARE:

SPSS & EXCEL used here to analyze the primary data. SPSS is very useful here

to effectively analyze the data and get effective result which is reliable enough as

sample size is sufficient to analyze.

1.4 SCOPE OF THE STUDY:

The study is mainly all about the comparison between DTH TV & Cable TV

services and analysis various factors which influenced people to switch over from

cable TV to DTH TV. So we analyze the factors which influenced people more to

switch over and the study also said about the substitutes/ threats of DTH services

such as IPTV, Online TV so that company make new strategy in future to face the

new competition.

From this study we know the perception of the households towards various DTH

TV players, cable TV so that they use it in company‟s strategy to make them

prepare for that competitive market. Various DTH players also use new

technology to give more facility to the customers to avoid extra competition in the

market. The market share of various TV network suppliers helps them to analyze

their business so that they capture the opportunities & also the market share of

various DTH players give them information to placed them in the market

situation. All of this information helps players to carry DTH industry in a good

position and helps to analyze future strategy.

From this study people also take advantage to choose the suitable TV network

providers by analyzing the market environment.

1.5 LIMITATION OF THE STUDY:

Only Ghaziabad region will consider as research area.

Only Ghaziabad area not sufficient enough to analyze the market of DTH satellite

services, there we should also consider the other region for this analysis.

Ghaziabad is now growing area in NCR region but there is rural area, small cities

which we have to consider to getting back effective result from the analysis.

There are various payment systems of cable TV operators in various areas.

Depending on area whether it is big town or small city or any industrial area or

any rural area there are various payment system of cable TV operators. So here

we can‟t consider all these system so that we analyze effectively. People are more

sensitive towards price which they have to pay monthly so that plays an important

role here for the buying behavior of the customer. So by considering only one

region payment system we can‟t say anything more about the buying behavior of

the consumer.

Future analysis of DTH satellite TV will be based on those data which collected

from Ghaziabad only.

CHAPTER 2 – REVIEW OF

THE STUDY

2.1. REVIEW OF THE STUDY

2.1.1. SANDEEP VARMA & DORIS JOHN, “DTH

VS. CABLE TV: SKY WARS IN INDIA” IN

2006

2.1.2. SHIVASUNDARAM UPADHAY,

“INDUSTRY ANALYSIS- DTH INDUSTRY

IN INDIA” PULISHED 2007

2.1.3. RESEARCHER FROM GARTNER, 2007

2.1.4. “INDIAN READERSHIP SURVEY 2008

R2”

2.1.5. “INDIAN ERTERTAINMENT & MEDIA

OUTLOOK 2009” IN 2009

2.1.6. RNCOS INDUSTRY RESEARCH

SOLUTION, “INDIAN DTH MARKET

FORECAST TO 2012” IN 2009

Sandeep Varma and Doris John published a Case study: “DTH vs. Cable TV:

sky Wars in India” in the year 2006. Home entertainment in India had come a long way

from the days when there was only one national channel, Doordarshan, to the age of

satellite television and, now, the latest development called DTH (Direct to Home)

technology. With the Government of India having set the end of 2006 as the deadline to

introduce CAS (Conditional Access System), in selected metros and later all over India,

the scene would become more competitive. Cable operators have started pressurizing the

Indian Government to speed up the process of changing the analog technology to digital.

Once cable is digitized, cable operators would also be in a position to provide programs

in high quality as like DTH.

Apart from DTH, new emerging technological advancements in TV viewing like

Internet Protocol Television (IPTV) and Cell Phone TV would also compete among

themselves to get their share of the market in the Indian home entertainment industry.

The Indian customer would have more options in terms of TV entertainment and the main

deciding factor would be service support. The case allows for discussion on the present

scenario of home entertainment in India.

They highlight the various technological advancements that happened in the field

of TV broadcasting and also throw light on various service providers and their services.

They discuss the emerging technologies in home entertainment in India.

Industry analyst Sivasundaram Umapathy published his literature „industry

analysis- DTH industry in India‟ in 2007. In this paper he analyzed the challenges and

opportunities present for the DTH industry within the Indian contest. We would look at

the history of Indian broadcasting followed by looking at the current DTH market. An

environment analysis done using the Potter‟s five forces model and and the various

challenges faced by the industry identified. Finally we look at the possible suggestions

taking a long term view.

With the existing regulatory restrictions, Increasing content cost and lack of

transponders, DTH terrain too steps to climb. With content differentiation not happening

in the near future, companies have to differentiate only the service and cost levels. The

increasing consumer awareness and expectations also make it difficult to satisfy the

consumer. Today‟s consumer is sensitive to price as well as the quality. Apart from the

volumes business, a prudent DTH operator should also take a serious look at the

substitutes and complements. He should diversify and create his presence in the entire

spectrum of broadcasting and telecommunication services. The final winner cannot be a

pure DTH player but a convergent player who offers all in one to the value-conscious,

price sensitive Indian consumer.

Researchers from Gartner [2007] believes that IPTV will struggle in India for

following reasons

Cable TV users pay almost half of what digital subscribers pay

Low broadband penetration will inhibit IPTV uptake;

2007 is a critical year for pay TV, with CAS being mandated in a phased manner,

and more players are moving into DTH, which is growing.

IPTV will be priced at the same price as digital cable or DTH, so no price

differentiation

As the numbers of broadband users are increasing in urban and semi urban cities

IPTV can pose serious threat to DTH player in long run.

The „Indian Readership Survey 2008 R2‟ findings have shown that the Dish TV

is the largest player with over 3.1 million subscribers, followed by DD Direct, Tata Sky

and Sun Direct, which has a predominance in the southern zone.

“Indian entertainment and media outlook 2009” published in 2009 where they

discussed about all the entertainment industry.

In 2008, there is a significant churn of subscribers from cable in favour of DTH, as the

latter subsidizes hardware, reduces installation costs and introduces value packs.

Aggressive marketing and promotions also helped DTH lap up subscribers in 2008 which

reached ~11.5 million at the end of the year from ~3.5 million in the beginning of 2008.

2008 also witnessed a „technology-war‟ amongst DTH players. With new players

Bharti Airtel‟s Digital TV and Reliance‟s DTH service Big TV launched in 2008, a

technology war erupted between these new players and the older players, Dish TV and

Tata Sky use of technology in the set-top-boxes. The older DTH players claimed that the

latest MPEG-4 technology, as used by the new DTH players, violates existing guidelines

for DTH operations citing reasons of inter operability. In the view of the older DTH

players, the new DTH players are required to offer commercial inter-operability with the

existing MPEG-2 set top boxes being used by the older DTH players. The matter is

currently under dispute with BIS.

RNCOS industry Research Solutions published new report as “Indian DTH

Market Forecast to 2012” in 2009.

In their report they said that the DTH service market in India has emerged as one

of the most lucrative markets which have successfully resisted the impacts of the current

economic slowdown. The slowdown has certainly proved a boon for the Indian DTH

industry as people have now started to cut on their entertainment expenditure and instead

of viewing movies at theatres, they are preferring to stay at home with their television

sets. The industry is anticipated to add nearly 5 Lakh subscribers per month during 2009

and the numbers are forecasted to surge further at a CAGR of around 30% through 2012.

"With over 130 Million TV homes, India offers large room for growth in DTH

services as the technology can be used to offer DTH services in remote location, where

setting up of cable networks seems impossible, or is highly expensive", says a Sr. analyst

at RNCOS. It is forecasted that DTH will capture over 21% of TV homes in India by

2012, up from around 10% now.

Their report, "Indian DTH Market Forecast to 2012”, provides thorough

analysis of the current market performance and the future outlook of DTH services

market in India. It gives detailed analysis of the success factors and also helps in

determining what all are the issues or the hurdles in front of the burgeoning DTH services

market in the country. The study also explains the reason for why all the incumbent

players have been investing huge amounts into the promotion and marketing of DTH

services in the country, despite the current economic slowdown.

This research provides extensive research and rational analysis of the DTH

market in India. It will help clients to understand the underlying potential of DTH

services in the Indian television industry. Various factors which will drive the future

growth of the DTH market in India have been thoroughly analyzed in the report. The

report will also help in gaining insight into the prevailing key trends and developments

that are contributing positively towards the growth of the market.

http://www.rncos.com/Report/IM198.htm

CHAPTER 3 – THEORETICAL

CHAPTER

3.1. INDIAN CABLE TV SERVICES

3.2. INDIAN DTH SATELLITE TV SERVICES

3.2.1. INDIAN DTH SATELLITE TV

3.2.2. WORKING OF DTH

3.2.3. CURRENT SCENERIO OF DTH TV

3.2.4. STRUCTURE OF THE DTH INDUSTRY

3.3. ENVIRONMENT ANALYSIS OF DTH INDUSTRY

3.1. INDIAN CABLE TV SERVICES:

The history of Indian Television dates back to the launch of Doordarshan, the

country‟s national television network in 1959 when the transmission was in black &

white. The 9th Asian games which were held in 1982 in the country‟s capital New Delhi

heralded the mark of colour television broadcast in India. In 1991, Indian economy was

liberalized from the license raj and major initiatives like inviting FDI, deregulation of

domestic businesses emerged. This led to the influx of foreign channels like Star TV and

creation of domestic satellite channels like Sun TV and Zee TV. This virtually destroyed

the monopoly held by Doordarshan. In 1992, the cable TV industry started which

changed the way the average Indian watches the television. Every city in India had a new

breed of entrepreneurs called as cablewallahs or Local Cable Operators (LCO) taking in

charge of distribution. Since this was a disorganized sector carrying new channels on the

existing infrastructure required new investments which the operators were reluctant to

make. This led to the emergence of a new breed of firms called as Multi System

Operators (MSO) who had heavy financial muscles to make capital investments and

liaised between the cable operators and the channels. MSOs provide the feed to the local

operators for a fee.

In 1995, government felt the need of regulation in Cable TV and passed the Cable

TV network (Regulation) Act. This was also the time when the state owned Doordarshan

and All India Radio came under a new holding called as Prasar Bharati to give them

enough autonomy. The LCOs reported a lower number of connections where as the

broadcasters demanded a higher rate. MSOs were finding it difficult to operate under

these conditions. This led to an amendment of the Cable TV networks(Regulation)Act in

2002 to provide Conditional Access System (CAS). With CAS, the last mile distribution

could be addressable with accuracy and digitalization of broadcast was also possible.

CAS was rolled out in 2003 staring from Chennai and later to parts of Delhi, Mumbai and

Kolkata.

3.2.1 INDIAN DTH SATELLITE TV SERVICES:

DTH stands for Direct-To-Home television. DTH is defined as the reception of

satellite programmes with a personal dish in an individual home. DTH does away with

the need for the local cable operator and puts the broadcaster directly in touch with the

consumer. Only cable operators can receive satellite programmes and they then distribute

them to individual homes.

DTH services were first proposed in India in 1996. But they did not pass approval

because there were concerns over national security and a cultural invasion. In 1997, the

government even imposed a ban when the Rupert Murdoch-owned Indian Sky

Broadcasting (ISkyB) was about to launch its DTH services in India. Finally in 2000,

DTH was allowed. The new policy requires all operators to set up earth stations in India

within 12 months of getting a license. DTH licenses in India will cost $2.14 million and

will be valid for 10 years. The companies offering DTH service will have to have an

Indian chief and foreign equity has been capped at 49 per cent. There is no limit on the

number of companies that can apply for the DTH license. On the DTH front, TRAI

issued the guidelines for operating DTH. Country‟s first DTH license was awarded to

Dish TV in 2003 which started operations in 2004. Prasar Bharati also started its product

DD-Direct+.

In 2007, TRAI proposed a new initiative by name “Headend-In-The-Sky (HITS)”

model as an alternative to the existing cable distribution. Instead of the MSOs providing

the bundle, there will be a single HITS operator who will prepare the bundle of channels

and beam it to the Headend in the satellite. With the average Indian getting younger, and

hence more likely to spend on nonessentials, the entertainment industry has the potential

to grow explosively in the future. Now the industry is ready to enter a second stage of

growth powered by the twin engines of technology (availability of quality infrastructure

and the accelerated penetration of digital connectivity) and an enabling regulatory

environment.

3.2.2 WORKING OF DTH

Direct To Home (DTH) is a distribution platform for multichannel TV

programmes on Ku brand (high frequency of 11.7 to 14.55 Gigahertz) by using a satellite

system which transmits signals directly to subscriber premises.

The term predates DBS satellite and is often used in reference to services carried

by lower power satellite which required larger dishes.

3.2.3 CURRENT SCENERIO OF DTH SATELLITE TV SERVICES:

In the current context of the global financial meltdown, the Direct to Home

(DTH) industry in India is in the throes of multifarious challenges and opportunities. The

“big game” is all about shaping up grandiose plans to master the winning rules to garner

as much portion of the Indian DTH pie as possible by a handful of players. Since the

DTH space denotes “big value”, akin to the space occupied by television and telephony,

inter-firm rivalries have thrown up price wars, discount schemes, procurement of

Following are the simplified steps

on how DTH works:

1. Broadcoster Sends the signals

2. The satellite receives the

signals at Ku Band

3. The Dish Antenna at

subscriber‟s home receives the

signals

4. The set top box decodes the

signal and sends it to TV set

transponders, ambitious targets for improving the subscription base, popular bouquet of

channels, set top boxes with superior quality of videos, improving content, etc as a

desperate means to entice the Indian viewer. A neat 20 per cent annual growth is being

witnessed in the DTH sector in India with over 16 million households having digital pay-

TV.

According to Harsh Bijoor, a brand consultant, “Since Dish TV, the biggest

market player on the Indian soil, has not scraped even five per cent of the pie, there is

plenty left for other players to eat”.

In the early 2008, five major players, Zee‟s Dish TV, Tata Sky, Reliance ADAG,

Sun Direct and Bharti Telemedia formed an umbrella body – DTH Operators Association

of India (DOAI). Dish TV is the largest DTH provider with a subscriber base of around 5

million, Tata Sky, a DTH joint-venture Company between Star (owned by Rupert

Murdoch) and the Tata Group (20:80), now has around 3.4 million connections and the

forecast for 2012 is that it will further increase to eight million, Sun Direct, the 80:20 JV

between the Maran family and the Astro Group of Malaysia, over 2.3 million, Big Tv

about 1.2 million and Airtel Digital Tv about 0.3 million subscribers (Source: Business

Standard, May 1, 2009). According to sources, DD Direct Plus has a subscriber base of

about 3-4 million subscribers, mostly in the remote corners of the country not connected

by terrestrial or cable television.

DTH operations in India could be enhanced if the dearth of satellite capacity is

removed by increasing the number of available Ku-band transponders that at present is 12

on Insat 4A, which in turn would mean more channels for viewing.

Tax burdens on DTH are another area of complaint for operators. Around 40 per

cent of revenues are siphoned off to pay taxes and license fee and another 12 per cent for

services imposed by the Central government. Apart from this, there are entertainment

taxes that differ from state to state.

3.2.4 STRUCTURE OF THE DTH INDUSTRY:

The structure of the DTH industry in India can be categorized as an “Oligopoly”.

The word Oligopoly is derived from the Greek for few (entities with the right to) sell.

An oligopoly is a market form in which a market or industry is dominated by a small

number of sellers (oligopolists).

An oligopoly is a market dominated by a few large suppliers. The degree of market

concentration is very high. Firms within an oligopoly produce branded products and there

are also barriers to entry.

Key characteristics of “Oligopoly” are following:

Few larger supplier dominates the market

Interdependence between firms

Each firm produces branded products

Significant entry barriers into the market in the long run which allows firms to

make supernormal profits

Each oligopolist is aware of the actions of the others.

Analysis of the Indian DTH industry:

Indian DTH industry is still at nascent stage. In the year 2003 DD Direct+ was

launched since DD Direct+ is non commercial and free DTH service hence we would

focus our discussion on private players in the industry.

As of now DishTV, TataSky, BigTV, AirTel Digitel TV, Sun Direct are in the

industry. There are some other players like Videocon, who want to join this high lucrative

industry. Since there are only 3 major players and the market concentration is very high

Indian DTH industry is oligopolistic.

DTH Industry Market Share 2009*

Brand Promoter

Market

Share

Dish TV Zee group 31.25%

TataSky Tata Sons & Star TV 20.6%

Big TV Anil Dhirubhai Abani Group 16.25%

AirTel Digital AirTel by Bharati telemedia 18.7%

Sun Direct

DD Direct+

Videocon d2h

18.7%

20%

3.15%

3.3 ENVIRONMENT ANALYSIS OF DTH INDUSTRY:

Here is the Porter‟s 5 forces model in the context of DTH industry. The observations are

categorized into the 5 forces as below.

1. Threat of substitutes:

DTH faces stiff competition from the terrestrial, cable and IPTV. As per the industry

estimates, there are 130 million TV homes of which 85 million are served by cable and

around 16 million by DTH with the remaining taken by terrestrial transmission.

Terrestrial Television:

Doordarshan is the world‟s largest terrestrial broadcaster with over 1400 terrestrial TV

transmitters. The reach provided by this route is phenomenal with Doordarshan covering

88% of India‟s geographical area. Covering the remaining 12% area required substantial

capital investments which does not outweigh the benefits. The transmission was done

originally in Analog mode but beginning from 2002, Doordarshan has partnered with

BBC resources – the consulting wing of BBC, in offering digital terrestrial TV. The

transmission could be received using a low cost Yagi antenna. However, due to lack of

attractive content it does not seem to be a formidable threat for DTH.

Cable TV:

Cable TV currently operates in 2 modes viz. through CAS covering cities like Chennai,

Delhi, Mumbai and Kolkatta, and through non-addressable system in the rest of the

country. As seen from the above diagram Cable TV enjoys the maximum share as

compared to other medium. In case of CAS controlled areas, the subscriber has to buy Set

Top Box (STB) to see the pay channels. On the other hand, in areas where non-

Cable TV66%

Terrestrial22%

DTH12%

India Broadcasting

Cable TV

Terrestrial

DTH

addressable system is used, nearly all the channels are available without the need of any

separate receiver by paying anywhere between Rs 100 to Rs 350 per month depending on

the place. Due to phenomenal reach of Cable TV, it poses a serious threat to the growth

of DTH industry.

Internet Protocol Television (IPTV):

IPTV is a service where television signals are digitally sent over the telecommunications

line. It is often presented as a bouquet of Video (IPTV), Audio (Telephone) and Data

(Broadband Internet) services. With widespread adoption of broadband in the country and

the growing techno savvy population, IPTV has a potential to become a huge success.

IPTV takes the interactivity to a newer level. In regular mediums, all the channels are

pushed to the consumer regardless of his preference. IPTV encourages a two-way request

response model where the consumer chooses the programs he wants to view. Right now

thos medium is totally unregulated and cable companies are urging the TRAI to issue a

consultation paper process to include IPTV under the aegis of Cable TV act. IPTV is a

considerable threat to DTH in urban and semi urban areas where broadband has made its

mark.

Online TV:

The World Wide Web is changing lot of things, the way data & information are stored,

and shared has changed dramatically. Web 2.0 offers users to watch TV programs online.

There are already websites like:

www.indiatvonline.com

www.tvdekho.com

Apart from this website TV channels are also streaming live videos of their programs.

Online TV though is a niche industry as of now but with increased penetration of

broadband connection, it can pose significant challenge to DTH industry.

2. Bargaining power of suppliers:

DTH industry relies on three major supplies: Customer Premise Equipment (CPE)

comprising of the satellite dish, Set Top Box with the necessary Access card, the Ku band

transponders in the orbiting satellites and content. With India overtaking Japan as Asia‟s

largest DTH, the bargaining power of Indian DTH operators with CPE supplies have

increased.

However, the availability of transponders is increasingly becoming difficult. The Ku

band transponder is generally provided by Astrix, the commercial wing of ISRO either

through its own satellites or by leasing transponders from suppliers. With only two

domestic satellite launches between 2007 and 2010 an d increasing DTH players, Astrix

is in a better position to use DTH as its cash cow for the next 5 to 10 years. Also the crash

of INSAT 4C and NSS-8 has worsened the situation of DTH players. As there is not

much of regulation particularly in terms of channel pricing, acquiring content from the

broadcasters is also difficult. DTH vendors are at the mercy of the broadcasters.

3. Bargaining power of buyers:

With enough options to choose both from the pont of alternate mediums like Cable, IPTV

and Terrestrial broadcast and from the point of increasing DTH operators, the consumer

is at his will to decide. Customers will continue to have a high bargaining power until

DTH platforms try to differentiate them as superior players with better content and

clarity.

4. Inter firm rivalry:

With 6 operational players, the inter firm rivalry is quite high. The competition from state

owned DD-Direct to private players is negligible from the content point of view as the

number of channels offered by DD-Direct is very limited. However, DD-Direct does not

charge any monthly subscription fee which poses a threat to the private players. Between

Dish TV and Tata Sky there is an intense rivalry exhibited by price wars and discount

schemes offered to new connections. Being the first mover, Dish TV has price advantage

in both the STB as well as procuring the transponders. On the other hand, Tata Sky

claims its STB having superior DVD quality video.

Other than price wars and intense competition in increasing customer base, there is also a

competition at acquiring the content. Dish TV, Tata Sky and Sun Direct are part of big

groups that also have popular bouquet of channels like Zee, Star and Sun respectively.

The channels indirectly refuse content for DTH operators by charging exorbitantly or

mandating that all the channels of their bouquet to be transmitted when the vendor is

already capacity constraint.

5. Threat of new entrants:

With already 6 players in the DTH space, threat of new entrants is relatively low. There is

already enough competition which will discourage new firms to enter this business.

While getting a license is relatively easy, the barriers to entry are high when it comes to

pricing of CPE and getting the required transponders.

CHAPTER 4 –DATA ANALYSIS

4.1 DEMOGRAPHIC CHARECTERISTIC

4.2 FREQUENCY TABLE

4.2.1 ANALYSIS OF MEAN, SD

4.2.2 FREQUENCY TABLE

4.3 CROSS TABULATION

4.4 MEAN, SD & VARIENCE ANALYSIS

4.1 DEMOGRAPHIC CHARECTERISTIC:

This project has been done with the help of primary data that has been collected from the

households of Ghaziabad region. The purchasing behavior mainly depends on the full

family‟s perception. Now a day‟s TV is the main entertainer of a family, every household

take it as necessary item. There is no difference between perceptions of a middle class

family and a high class family towards TV network regarding their income. As the study

is regarding the comparison between Cable TV & DTH TV so here we neglect the

perception towards consumption of lower class family. So whatever may be the age

factor of an individual or the occupation they always need multi channel TV network.

Form this study I come to know that people need multi channel TV network rather than

terrestrial TV network.

4.2 FREQUENCY ANALYSIS:

NETWORK CONNECTION USED

Statistics Type of network connection using

N Valid 329

Missing 0

Mean 1.5502

Median 2.0000

Mode 1.00

Std. Deviation .57759

Percentiles 25 1.0000

50 2.0000

75 2.0000

Type of network connection using

Frequency Percent Valid Percent Cumulative

Percent

Valid cable network

162 49.2 49.2 49.2

dth satellite

153 46.5 46.5 95.7

terrestrial 14 4.3 4.3 100.0

Total 329 100.0 100.0

49.2

46.5

4.3

cable network

dth satellite

terrestrial

type of network connection using

MARKET OF DTH SATELLITE TV


Percent

Valid tata sky 42 12.8 27.5 27.5

reliance big tv

19 5.8 12.4 39.9

airtel digiltal tv

23 7.0 15.0 54.9

dish tv 48 14.6 31.4 86.3

sun direct 5 1.5 3.3 89.5

dd direct 7 2.1 4.6 94.1

videocon d2h

9 2.7 5.9 100.0

Total 153 46.5 100.0

Missing System 176 53.5

Total 329 100.0

Statistics

if DTH then which company's

153

176

3.0784

3.0000

4.00

1.74163

1.0000

3.0000

4.0000

Valid

Missing

N

Mean

Median

Mode

Std. Deviation

25

50

75

Percentiles

27.5

12.4

15

31.4

3.34.6

5.9

115

tata sky

reliance big tv

airtel digiltal tv

dish tv

sun direct

dd direct

videocon d2h

Missing


SWITCH OVER OR FROM CABLE TV TO DTH TV

Statistics switched over from cable TV to DTH or not

N Valid 315

Missing 14

Mean 1.5143

Median 2.0000

Mode 2.00



50 2.0000

75 2.0000


Percent

Valid yes 153 46.5 48.6 48.6

no 162 49.2 51.4 100.0

Total 315 95.7 100.0


Total 329 100.0

48.6

51.4

4.4

yes

no

Missing

switched over from cable TV to DTH or not

REASON BEHIND NOT SWITCHED OVER FROM CABLE TV TO DTH TV

Statistics if no then whats the reason

N Valid 163

Missing 166

Mean 2.5215

Median 2.0000

Mode 2.00

Std. Deviation 1.11298


50 2.0000

75 4.0000


Percent

Valid high price of dth 36 10.9 22.1 22.1

high price of combo

pack 50 15.2 30.7 52.8

diif of channel package choosing 33 10.0 20.2 73.0

others 44 13.4 27.0 100.0

Total 163 49.5 100.0


Total 329 100.0

22.1

30.7

20.2

27

101.8

high price of dth

high price of combo pack

diif of channel package choosing

others

Missing

if no then whats the reason

ALTERNATIVE OF DTH

do you using any alternatives of DTH


Percent

Valid yes 19 5.8 5.8 5.8

no 310 94.2 94.2 100.0

Total 329 100.0 100.0

which alternatives you are using


Percent

Valid iptv 13 4.0 68.4 68.4

cell phone tv

6 1.8 31.6 100.0

Total 19 5.8 100.0


Total 329 100.0

PICTURE QUALITY AS AN INFLUENCING FACTOR TO SWITCH OVER

Statistics How picture quality of DTH influence you to switched over

N Valid 153

Missing 176

Mean 4.4967

Median 5.0000

Mode 5.00


Variance .436


50 5.0000

75 5.0000

Frequency Percent Valid Percent

Cumulative

Percent

Valid moderate

influence 14 4.3 9.2 9.2

high influence 49 14.9 32.0 41.2

very high influence

90 27.4 58.8 100.0

Total 153 46.5 100.0


Total 329 100.0

9.2

32

58.8

115

moderate influence

high influence

very high influence

Missing

how picture quality of DTH influence you to switched over

CHANNEL PACKAGE AS AN INFLUENCING FACTOR TO SWITCH OVER

Statistics how channel packaging of DTH influence you to switched over

N Valid 153

Missing 176

Mean 3.8497

Median 4.0000

Mode 4.00


Variance .984


50 4.0000

75 5.0000

Frequency Percent Valid Percent

Cumulative

Percent

Valid not influence 8 2.4 5.2 5.2

less influence 2 .6 1.3 6.5

moderate influence

34 10.3 22.2 28.8


very high influence

39 11.9 25.5 100.0

Total 153 46.5 100.0


Total 329 100.0

5.21.3

22.2

45.8

25.5

115

not infuence

less influence

moderate influence

high influence

very high influence

Missing

how channel packaging of DTH influence you to switched over

NO DISTURBANCE OF SERVICE AS AN INFLUENCING FACTOR

Statistics how no disturbance of service of DTH influence you to switched over

N Valid 153

Missing 176

Mean 4.2157

Median 5.0000

Mode 5.00

Std. Deviation 1.12356

Variance 1.262


50 5.0000

75 5.0000

how no disturbance of service of DTH influence you to switched over


Percent

Valid not infuence 5 1.5 3.3 3.3

less influence 12 3.6 7.8 11.1

moderate influence

17 5.2 11.1 22.2


very high influence

89 27.1 58.2 100.0

Total 153 46.5 100.0


Total 329 100.0

3.3 7.811.1

19.6

58.2

115

not infuence

less influence

moderate influence

high influence

very high influence

Missing


EXTRA SERVISE AS AN INFLUENCING FACTOR

how extra services of DTH influence you to switched over


Percent



moderate influence

34 10.3 22.2 76.5


very high influence

25 7.6 16.3 100.0

Total 153 46.5 100.0


Total 329 100.0

SERVICE OF INSTRUMENT SUPPLY AS AN INFLUENCING FACTOR

how service of instrument of DTH influence you to switched over


Percent



moderate influence

45 13.7 29.4 57.5


very high influence

27 8.2 17.6 100.0

Total 153 46.5 100.0


Total 329 100.0

ONLINE PAYMENT AS AN INFLUENCING FACTOR

how online payment of DTH influence you to switched over


Percent



moderate influence

30 9.1 19.6 77.8


very high influence

17 5.2 11.1 100.0

Total 153 46.5 100.0


Total 329 100.0

EXTRA FACILITY AS AN INFLUENCING FACTOR

how facility(record, pause, load) of DTH influence you to switched over


Percent



moderate influence

47 14.3 30.7 49.7


very high influence

15 4.6 9.8 100.0

Total 153 46.5 100.0


Total 329 100.0

CELEBRITY ENDORSEMENT AS AN INFLUENCING FACTOR

how celebrity endorsement of DTH influence you to switched over


Percent



moderate influence

47 14.3 30.7 75.2


very high influence

11 3.3 7.2 100.0

Total 153 46.5 100.0


Total 329 100.0

DIRECT CONNECTION TO SERVICE PROVIDER AS INFLUENCING FACTOR

how direct connection to service provider of DTH influence you to switched over


Percent

Valid less influence 14 4.3 9.2 9.2

moderate influence

33 10.0 21.6 30.7


very high influence

36 10.9 23.5 100.0

Total 153 46.5 100.0


Total 329 100.0

ELECTRICITY DISTURBANCE IN CABLE PROVIDER

how no both way electricity disturbance of DTH influence you to switched over


Percent



moderate influence

23 7.0 15.0 26.8


very high influence

67 20.4 43.8 100.0

Total 153 46.5 100.0


Total 329 100.0

4.3 CROSS TABULATION

TYPE OF NETWORK CONNECTION VS SATISFACTION

Crosstab

do you satisfy or not with present service

Total yes no

type of network connection using

cable network Count 113 49 162

% within type of network connection using

69.8% 30.2% 100.0%

% within do you satisfy or not with present service

45.0% 62.8% 49.2%

% of Total 34.3% 14.9% 49.2%

dth satellite Count 133 20 153

% within type of network connection using

86.9% 13.1% 100.0%


53.0% 25.6% 46.5%

% of Total 40.4% 6.1% 46.5%

terrestrial Count 5 9 14

% within type of

network connection using

35.7% 64.3% 100.0%

% within do you satisfy

or not with present service

2.0% 11.5% 4.3%

% of Total 1.5% 2.7% 4.3%

Total Count 251 78 329

% within type of network connection

using

76.3% 23.7% 100.0%

% within do you satisfy or not with present

service

100.0% 100.0% 100.0%

% of Total 76.3% 23.7% 100.0%

Chi-Square Tests

Value df

Asymp. Sig. (2-

sided)

Pearson Chi-Square 26.143(a) 2 .000

Likelihood Ratio 24.888 2 .000 Linear-by-Linear

Association 1.215 1 .270

N of Valid Cases 329

a 1 cells (16.7%) have expected count less than 5. The minimum expected count is 3.32.

Since value p value is less than alpha i.e. .05 (95%confidence value) or calculated Chi-

Square statistics had a value of 26.143 which is higher than the critical value of 3.841,

therefore h0 is rejected. This shows that there is high association between network

connection & satisfaction with this network. This is an indication of the fact that people

more satisfied with DTH connection rather that cable connection.

DTH SATELLITE PLAYERS VS SATISFACTION

if DTH then which company's * do you satisfy or not with present service Cross tabulation

do you satisfy or not with present

service Total

yes no


tata sky Count 37 5 42

% within if DTH then

which company's 88.1% 11.9% 100.0%



27.8% 25.0% 27.5%

% of Total 24.2% 3.3% 27.5%

reliance big tv Count 13 6 19

% within if DTH then which company's 68.4% 31.6% 100.0%


service

9.8% 30.0% 12.4%

% of Total 8.5% 3.9% 12.4%

airtel digital tv Count 20 3 23



15.0% 15.0% 15.0%

% of Total 13.1% 2.0% 15.0%

dish tv Count 45 3 48



33.8% 15.0% 31.4%

% of Total 29.4% 2.0% 31.4%

sun direct Count 5 0 5


which company's 100.0% .0% 100.0%



3.8% .0% 3.3%

% of Total 3.3% .0% 3.3%

dd direct Count 7 0 7

% within if DTH then which company's 100.0% .0% 100.0%


service

5.3% .0% 4.6%

% of Total 4.6% .0% 4.6%

videocon d2h Count 6 3 9



4.5% 15.0% 5.9%

% of Total 3.9% 2.0% 5.9%

Total Count 133 20 153


which company's 86.9% 13.1% 100.0%



100.0% 100.0% 100.0%

% of Total 86.9% 13.1% 100.0%

Chi-Square Tests

Value df Asymp. Sig.

(2-sided)

Pearson Chi-Square 12.799(a) 6 .046

Likelihood Ratio 12.578 6 .050 Linear-by-Linear Association

.125 1 .724

N of Valid Cases 153

a 6 cells (42.9%) have expected count less than 5. The minimum expected count is .65.

Since p value is less than alpha i.e. .05 (95%confidence value) or calculated Chi-Square

statistics had a value of 12.799 which is higher the critical value of 3.841, therefore h0 is

rejected. This shows that there is high association between various DTH players &

satisfaction with these connections.

4.4 ANALYSIS OF MEAN, SD & VARIENCE Descriptive Statistics

N Mean Std. Deviation Variance


153 4.4967 .66019 .436


153 3.8497 .99188 .984


153 4.2157 1.12356 1.262


153 2.6797 1.30613 1.706


153 3.2026 1.24794 1.557


153 2.4575 1.31783 1.737


153 3.3333 1.05755 1.118

how celebrity endorsement of DTH influence you to switched over 153 2.6275 1.23481 1.525


153 3.8366 .89190 .795


153 4.0196 1.10900 1.230

Valid N (list wise) 153

It is clear from table that the mean of the most of the variables is more or less over 3, i.e.

consumers are agreeing with most of the related variables being present in a positive

manner among the service provider. Maximum customers agree to accept that these

variables are the most influencing factors to switch over from cable TV to DTH TV.

Higher means of variable picture quality indicates that according to the users picture

quality is the main influencing attribute towards consumer buying behavior. No

disturbance & no both ways electricity disturbance has also high mean variable these also

a good influencer. Whereas extra service, online payment & celebrity endorsement has no

such type affect on buying behavior of customers.

CHAPTER 5 –DATA ANALYSIS

SPACIFIC TOOLS

5. FACTOR ANALYSIS

5.1 RELIABILITY TEST

5.2 FACTOR ANALYSIS

5. FACTOR ANALYSIS

5.1 Reliability

Reliability Statistics

Cronbach's Alpha N of Items

.683 10

5.2 Factor Analysis

KMO and Bartlett's Test

Kaiser-Meyer-Olkin Measure of Sampling Adequacy. .634

Bartlett's Test of Sphericity

Approx. Chi-Square 379.369

df 45

Sig. .000

The result of KMO (0.634) and Bartlett‟s Test of Sphericity (Chi-Square- 379.369 &

significance- 0) indicates that Factor analysis done with the 10 service related variables

are effective. There were four factors extracted using the method of Principle Component

Analysis and Rotation Method of Varimax with Kaiser Normalization, with criteria of

eigenvalues greater than 1. Following table show the value of eigenvalues of various

variables.

Communalities

Initial Extraction

how picture quality of DTH influence you to switched over 1.000 .666

how channel packaging of DTH influence you to switched over 1.000 .667

how no disturbance of service of DTH influence you to switched over 1.000 .681

how extra services of DTH influence you to switched over 1.000 .779

how service of instrument of DTH influence you to switched over 1.000 .728

how online payment of DTH influence you to switched over 1.000 .730

how facility(record, pause, load) of DTH influence you to switched over 1.000 .659

how celebrity endorsement of DTH influence you to switched over

1.000 .699


1.000 .536


1.000 .763

Extraction Method: Principal Component Analysis. Total Variance Explained

Component

Initial Eigenvalues Extraction Sums of Squared Loadings

Total % of Variance Cumulative % Total % of Variance Cumulative %

1 2.842 28.419 28.419 2.842 28.419 28.419

2 1.831 18.314 46.733 1.831 18.314 46.733

3 1.177 11.766 58.499 1.177 11.766 58.499

4 1.059 10.587 69.087 1.059 10.587 69.087

5 .815 8.154 77.241

6 .710 7.103 84.343

7 .492 4.916 89.260

8 .480 4.797 94.057

9 .336 3.365 97.422

10 .258 2.578 100.000

Extraction Method: Principal Component Analysis. Component Matrix(a)

Component

1 2 3 4


.806 -.052 -.087 -.346


.751 -.370 -.025 -.169


.734 -.064 .144 .309


.701 -.097 -.346 -.327


.469 .271 .277 .407


.152 .702 .484 -.112


.239 .691 -.346 .164


.174 .661 .176 -.410

how celebrity endorsement of DTH influence you to switched over .393 -.387 .589 .217


.336 .219 -.467 .537

Extraction Method: Principal Component Analysis. a 4 components extracted.

According to the loading of variables on the four factors they can be labeled as:

FACTOR 1: Competitiveness

1. Extra Service

2. Online Payment

3. Facility (record, pause, load)

4. Quick Service of Instrument Supply

FACTOR 2: Service Quality

1. One Way Electricity Supply

2. No Disturbance of Service

3. Picture quality

FACTOR 3: Media Influence

1. Celebrity Endorsement

FACTOR 4: Personal Interest

1. Channel Packages

Attribute those were not important:

1. Direct Connection To Service Provider of DTH

The perceptual maps show the mapping of different factors in the mind of

customers and the association between them. The data reduced from many

attributes to 4 factors that have similar attributes.

The various factors mapped according to the rotated results of factor analysis. The

factors were given names based on the attributes in them. These factors were used

to form the factor analysis where two factors were mapped on X and Y axis to

know the relation between them.

The factors help the company to know how the product is currently mapped in the

customer‟s mind. If a target consumer is focused upon then the factors can be

changed and a different map can be formed.

The attribute Direct Connection To Service Provider is not a major attribute in

any of the factors. This means that the Direct Connection to service provider is

not motivating or influencing people enough to buy a new a connection of DTH.

CHAPTER 6-SUMMERY OF

FINDING, SUGGESTIONS &

CONCLUSION

6.1 SUMMERY OF FINDING

6.2 SUGGESTION

6.3 SCOPE FOR FURTHER STUDY

6.4 CONCLUSION

6.1 SUMMERY OF FINDING

In this study I found that out of 329 respondent 49.2% are cable TV network user

and 46.5% DTH satellite TV network user and only 4.3% terrestrial customer

which indicate that if we compare it with all over Indian market then there are

only 12% DTH customer. So here we say that in Ghaziabad region the DTH

satellite TV market is rapidly growing, we can say not only in Ghaziabad it arises

in full NCR region. Here the new players in this market like Videocon d2h, Airtel

digital TV also rapidly increases their market share day by day as we see from the

analysis Videocon has 5.9% market which came in the market few months ago

where as Airtel has 15% which also show rapid growing market share. Which is

totally different result from the market analysis of RNCOS Industry Research

Solution survey where they showed different market analysis.

Maximum DTH customers are switched over customer from cable TV network.

Those cable TV customers who still not change their network they said about the

high price of combo pack of DTH services as a reason for not switch over. That

means maximum people want to consume all type of entertainment from all

channels.

Out of 329 respondent only 19 are using alternatives out of which 68.4% iptv &

31.6% cell phone TV. This shows that in future this kind of alternative will create

a big challenge. Now a day‟s people are crazier about internet & cell phone so

they always take advantage of that kind of TV. So DTH players should make a

good strategy in future for that challenge.

In this study we find that 30.2% cable TV customers were not satisfied with their

services where as 13.1% DTH customers also not satisfied with their DTH

services. So there is a big market for DTH players to capture the dissatisfied cable

TV customers & terrestrial customers also.

In we analyze the current DTH player‟s service satisfaction level among

consumers then we find that Reliance Big TV & Videocon d2h consumers were

more dissatisfied (31.6% & 33.3% respectively) where as Tata Sky, Airtel Digital

TV, Dish TV & Sun Direct has 11.9%, 13%, 6.3% and 0% dissatisfied customers

respectively in Ghaziabad region. We find that cable TV network users were

moderately satisfied where as DTH customers were highly with picture quality

services. Cable TV users were moderate or less satisfied where as DTH TV users

were highly satisfied with their continuous network services. Maximum cable TV

users not satisfied with extra services like repair of wire, after sales services of

network providers. Here we find that DTH customers were not a very interested

with online payment services they use it rarely.

In the analysis we found that maximum customers of DTH were strongly

influenced by picture quality (58.8% strongly influenced) for the switch over from

cable TV to DTH TV network. Channel Packaging attributes influenced

consumers highly (45.8% highly influenced) where as no disturbance of service of

DTH influenced strongly (58.2% strongly influenced), facility (record, pause,

load) attribute (40.5% highly influenced), direct connection to service provider

(45.8% highly influenced), one way electricity connection (43.8% strongly

influenced) influenced highly for that switch over. But extra service like after

sales service (36% less influenced), online payment (29.4% not influenced &

28.8% less influenced) attributes did not influenced sufficiently. Quick Instrument

supply (29.4% moderately influenced) & celebrity endorsement (30.7%

moderately influenced) influenced moderately to consumer buying behavior

towards DTH TV network.

6.2 SUGGESTION

There are lots of customers who dissatisfied with DTH satellite TV services. The

maim sufferer is Reliance Big TV & Videocon d2h the percentage is 31.6% and

33.3% respectively. They should satisfy the customer first which is very common

in the current business scenario.

DTH satellite players should focus on cable TV customer to increase their market

share as there are lots of cable TV market share which is not satisfied with their

network services. This market is larger in urban & semi urban area than

Ghaziabad region. So there are lots of opportunities of DTH players in future.

The main reason behind not switching over is the high price of combo pack that

means people always want to entertain by seeing all channels not limited

channels. So DTH players make the pricing strategy in such a manner so that all

the monthly charge of combo pack reduced.

Now a day‟s people are crazier about the internet & Cell phone, so IPTV & Cell

Phone TV will play an important role in future. Now 6.1% customer using this

type of alternatives along with original one. But in future it will be a big threat to

DTH services. So DTH players should take advanced technology to provide

services.

6.3 SCOPE FOR FURTHER STUDY

The result obtained by this study pertain to only those respondents chosen through

convenience sampling, and since the profile of the sample is not a replica of actual

market share of different DTH satellite network providers in India, this study should be

seen as giving a direction for future research, and generalization from this study to a

wider population of DTH industry should be done with some caution. However this

research work can be extended by collecting additional samples. Further in order to

measure the customer satisfaction, overall satisfaction consumers perception has been

consider. Service loyalty as an after effect of satisfaction could be added as an additional

variable for further research.

Another direction provided by the research is related to the gap between customer

perception and expectation as a driver of satisfaction. Also the DTH service in India is

now growing so here the viewpoints of DTH players can be explored. There are factors

influencing customer satisfaction where we further carry this research toward satisfaction

level from how to switch over.

Further, to identify the proper factors influencing switch over from cable TV to DTH TV,

in methodical manner, DTH services can be compared with other types of network

providers.

6.4 CONCLUSION

On the basis of the data collected and the tests conducted I have arrived at the following

conclusions:

With the help of frequency table I was able to find the market share cable TV, DTH

satellite TV, terrestrial TV networks and also market share of various DTH players in

DTH market. Such as 49.2% market share cable TV, 46.5% of DTH TV and 4.3% of

terrestrial TV.

Cross tabulation between network connection and overall satisfaction showed that there

were lots of dissatisfied customers of cable TV rather than DTH services. Also cross

tabulation between DTH players and overall satisfaction showed that Reliance &

Videocon suffers from customer dissatisfaction factor most than other players.

There is high association between network provider and satisfaction of the services they

get from network provider. The most important factor came out is to be picture quality

and no disturbance of services.

There is also high association between switch over and various influencing factors.

Picture quality, no disturbance of services, channel packaging are more affective here.

In factor analysis I found out 4 factors which mainly have an impact on consumer buying

behavior or influence customer to switch over from cable TV to DTH TV or buy first TV

network service.

I also found out the market position of various alternatives of DTH TV players. They are

growing now.

BIBLIOGRAPHY

KOTLER, P. & KELLER L. K. (2009) MARKETING MANAGEMENT,

PEARSON PRENTICE HALL, DELHI

LOVELOCK, C., WIRTZ, J. & CHATTERJEE, J. (2009) SERVICE

MARKETING, DELHI

MALHOTRA, K. NARESH (2008) MARKETING RESEARCH, PEARSON

PRENTICE HALL, NEW DALHI

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INDIAN CELLULAR SERVICES MARKET, THE ICFAI UNIVERSITY

PRESS, NEW DELHI

GARTNER (2007) RESEARCHER

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2008- TATA SKY

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RELIANCE BIG TV

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ENTERTAINMENT AND MEDIA OUTLOOK 2009

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INDUSTRY IN INDIA

VARMA S. & HOHN D. (2006) DTH VS CABLE TV: SKY WARS IN INDIA

HTTP://EN.WIKIPEDIA.ORG/WIKI/COMPLEMENTARY_GOOD

HTTP://EN.WIKIPEDIA.ORG/WIKI/OLIGOPOLY

WWW.AIRTEL.IN/WPS/WCM/CONNECT/DTH/BHARTI+DTH/HOME.DTH-

PG-HOMEPAGE

WWW.APNADTH.COM/TECH_OVER.HTM

WWW.BIGTV.CO.IN.ABOUT-BIGTV.HTML

WWW.CONTENTSUTRA.COM/ENTRY/419-IPTV-WILL-STRUGGLE-IN-

INDIA-SAYS-GARTNER/

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IS.PDF

WWW.GOOGLE.COM

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DTH_VS_CABLETV

WWW.INDIASTUDYCHANNEL.COM/RESOURCES/CATEGORY3.ASPX/C

OMPARISON_CABLETV _DTHTV

WWW.MANAGEMENTPARADISE,COM

WWW.SCRIBD.COM

WWW.TATASKY.COM/WHY-TATA-SKY.HTML

REFERENCES

KOTLER, P. & KELLER L. K. (2009) MARKETING MANAGEMENT,

PEARSON PRENTICE HALL, DELHI

MALHOTRA, K. NARESH (2008) MARKETING RESEARCH, PEARSON

PRENTICE HALL, NEW DALHI

GANGULI, S. (2008) DRIVERS OF CUSTOMER SATISFACTION IN THE

INDIAN CELLULAR SERVICES MARKET, THE ICFAI UNIVERSITY

PRESS, NEW DELHI

PRICEWATERHOUSECOOPERS PVT. LTD, (2009) INDIAN

ENTERTAINMENT AND MEDIA OUTLOOK 2009

UMAPATHY SIVASUNDARAM (2007) INDUSTRY ANALYSIS- DTH

INDUSTRY IN INDIA

RNCOS INDUSTRY RESEARCH SOLUTION (2009) INDIAN DTH MARKET

FORECAST TO 2012

KUMAR, G. (2008) COMPETITIVE STRATEGY: INDIAN DTH MARKET,

RELIANCE BIG TV

KOTHARI, AMI & VELISETTY SWATHI SOOD PALAK (2008) COMSTAT

2008- TATA SKY

VARMA S. & HOHN D. (2006) DTH VS CABLE TV: SKY WARS IN INDIA

RAJPUT, S. S. (2008) MAKRET STRUCTURE: INDIAN DTH INDUSTRY

BUYERS GUIDE- ELECTRONICS FOR YOU- FEB 2009

INDIAN READERSHIP SURVEY 2008 R2 (2008)

GARTNER (2007) RESEARCHER

WWW.INDIASTUDYCHANNEL.COM/RESOURCES/CATEGORY3.ASPX/C

OMPARISON_CABLETV _DTHTV

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DTH_VS_CABLETV

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ANNEXTURE

Questionnaire of

Dissertation Report On

INDIAN DTH SATTELITE TV SERVICES: A COMPARATIVE STUDY OF

VARIOUS DTH SATTELITE TV PLAYERS WITH CABLE TV IN GHAZIABAD

REGION

Name :

Occupation :

Address :

Contact No :

1. What type of network connection you are using for your TV-

(a) Cable Network (b) DTH satellite services

2. –if DTH then which company services you are using-

(a) Tata Sky (b) Reliance Big TV

(b) Airtel Digital TV (d) Dish TV

(e) Sun Direct (f) DD Direct

(g) Videocon d2h

3. Do you satisfied with your TV network services?

(a) Yes (b) No

4. Which type of channel package you used most for your entertainment?

5. Have you switched over your TV network from Cable network to DTH satellite

services?

(a) Yes (b) No

6. –if No then what is the reason behind that-

(a) High price of DTH at subscription time.

(b) High price of combo pack with respected to Cable network.

(c) Difficulties of choosing different channel packaging.

(d) Others.

7. Give mark to the following factors on a scale of 1-5 (1= lowest……. 5= highest)

How much the following factors had influenced you to switch over from Cable network

to DTH satellite service / to buy DTH satellite service as first TV network.

FACTORS 1 2 3 4 5 Picture Quality Channel Packaging No Disturbance in service Extra service Quick services of instrument supply Online Payment Facility (record, pause, load) Celebrity Endorsement Direct connect to Service provider Electricity Disturbance

How much the following facilities and services you are getting well from your network

provider.

FACILITIES/ SERVICES 1 2 3 4 5 Picture Quality Channel Packaging No Disturbance in service Extra service Online Payment Facility (record, pause, load)

8. Do you using any other alternatives of DTH services like IPTV / Cell phone TV?

(a) Yes (b) No

9. –if Yes then specify the alternative-

(a) IPTV (b) Cell phone TV

Dissertation Project on DTH services

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